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Lufthansa Group Wiki
Company Lufthansa Group consists of 6 Major airlines, all networking together. * Lufthansa * Swiss International Airlines * Edelweiss * Austrian Airlines * Brussels Airlines * Eurowings * Scandinavian Airlines Lufthansa also own * Air dolomiti Short haul operations Since 2015 Lufthansa Group focuses heavily on the short haul market, to build a capable foundation for future expansions in their medium & long haul segment. A key part of this strategy have been the order of 250 Airbus A220 and 250 A320 Neo series. The new aircraft's boasts best in class comfort, technology and fuel efficiency, and with the help of further cost reductions of the bunk order, same pilot and cabin crew training throughout the company and split maintenance costs, it will help the group stay competitive in an increasingly crowded market. The aircraft's will be distributed to the different Airlines depending on their size and need. The new additions have made a large impact on the groups fleet. As the new planes are added to the fleet, the oldest ones are moved between the group, and the planes that don´t make the cut will be passed down to Lufthansa Leasing AB. Strategy All airlines in the group utilize the hub and spoke strategy, except Eurowings which acts as the group´s Low cost carrier, utilizing point to point strategy throughout their operations in Europe. The airlines is responsible for different regions of Europe, to feed passengers into the large hubs. All airlines are obligated to operate flights to all hubs of the group, making the experience "seamless and worry free for passengers, and ensuring that the airlines stay competitive to airlines outside the group, instead of competing with our self" As CEO Branden Lahn stated in an interview back in 2016. Acquiring Scandinavian Airlines In august of 2018 Lufthansa Group acquired SAS Scandinavian Airlines for an undisclosed amount. CEO Branden Lahn again, "Our new Scandinavian hubs are perfect for north European travelers wanting to connect at an hub in the direction they are heading, this will further improve the seamless experience for our global travelers and we hope this will result in an improved market-share by the end of 2020." Market gaps Lufthansa Group has rapidly taken large market shares in their new regions. Having a strong grip around Scandinavia, Germany, Switzerland, Austria and Benelux. However they are not as present in the British isles and southern Europe. Lufthansa has previously tried taking a bite of that market with Lufthansa Italia, founded in 2009, but failed and ceased operations in late 2011. Lufthansa Has now been eyeing for a further expansion in the Spain/Portugal region by potentially acquire Tap Portugal or create a subsidiary of any of the members in the group. This would create a gateway between Europe and South America. This tactic is lucrative for Norwegian and the home carriers, and Lufthansa has no hub close to the south west of Europe. This investment would make flying from Europe to South America more effective and more profitable. Lufthansa group short haul fleet Life after Lufthansa After have served Lufthansa for some years, older and less modern aircrafts gets passed down the food chain for many more years of operation with sister-companies or subsidies. The aircrafts that are "too old" for the groups airlines will be leased out by Lufthansa Skylease AB. The leasing company is believed to finance 30% of Lufthansa groups recent investment in the future. Service Since 2018 the airlines signed a contract which allowed passengers more freedom and flexibility with their ticket. The new ticket system is according to CEO Lahn "The most complex and intelligent ever made". "by combining the groups flights into just one system the passenger can tailor his flight himself instead of choosing a existing one. The passenger can select preferred airline, aircraft, connection hub and much more. The Airlines now also share one membership m the experience seamless and just fantastic" Lahn continued in the same interview by the Financial times in summer 2018. The airlines agreed to utilize the following ticket classes to prevent confusion for passengers: Flight scheduling The groups airlines have all redone their flight scheduling to better fit together with each other. In many focus cities, two airlines from the group often take up 2 gates, when they depart, 2 new airlines from the group occupy the gates. This runs along the whole day making it economical for Lufthansa to "buy" or lease 2 gates in a 4-5 year contract. This will reduce cost significantly when Lufthansa can hire just 2 employees for boarding instead of 12 as it would have been without the partnership. Being a large group the airlines can be more offensive against competitors, running routes at a loss just to battle out the competition. European union competition law In June 2018 Lufthansa tried to buy the remaining 50% stake in Air dolomiti, making the airline that operates form Munich to the alps fully owned by Lufthnsa. But the deal never went through as the European union competition law declined the purchase, stating that it would seriously harm the tourism if there was a airline monopoly flying there. Lufthansa protested the verdict, and the union responded with permission to buy the airline if they would offer at least 40 tickets at a maximum of $100 on 3 flights a day to at least 3 destinations. In august 2018 the papers were signed and Air dolomites are now in Lufthansas possession. Lufthansa has been vague to present their plans with the Italian airline, but promises that the name will remain. Whether or not the airline will be participating in the flight booking system or Eurobonus has not yet been unveiled as of september 17th 2018. Long haul operations Lufthansa has incorporated a banking system which allows as many different connection opportunities as possible with as little as possible connection time for passengers. This strategy is common with especially gulf carriers and is in most cases very profitable for the airlines. Fleet aircraft Category:Airline Category:Lufthansa